DRASTIC budget cuts to S4C will have a negative impact on the economy of North West Wales, says Alun Ffred Jones AM.

The member for Arfon and Heritage Minister spoke out after Monday’s announcement that the broadcaster is having 2% cut off its £100m annual budget from the Department of Culture, Media and Sport (DCMS).

“The £2m S4C is being asked to give back to the Treasury is an attack on Welsh language broadcasting,” said Mr Jones.

“There are thousands of hours of English channels and this £2m is a drop in the ocean if you look at the overall deficit.”

Mr Jones said the impact of the Government’s decision would hit the Caernarfon region hard, adding: “There are now only three TV production companies in the area, compared to around a dozen several years ago.

“And other trades will be affected too, there will be a knock-on effect for taxi drivers, carpenters, restaurants – the wider economy, businesses that got work off the back of these TV companies.

“In the 1980s and 90s these independent TV companies gave huge assistance to the economy of these areas; it’s vital other regions in all areas of Wales have such companies, and not just Cardiff.”

Welsh Secretary Cheryl Gillan said: "Our top priority is to reduce the deficit. None of this is going to be easy.

“There are going to be difficult decisions across the board.”

In a statement an S4C spokesman said: “We will endeavour to ensure that this reduction will not directly affect services to viewers.

“However, any further reductions in S4C’s budget will have to be considered in terms of the adverse effects on services and S4C’s economic impact.”